Financial Services, Food & Beverage, International News, Retail & Wholesale, US News

Finance fueling rise of U.S. billionaires

by  • 

TFinance fueling rise of U.S. billionaireshe finance sector is fueling the rise of U.S. billionaires, according to a new study.

Findings from a study conducted by researchers at the Peterson Institute for International Economics showed that more than 40 percent of the growth in billionaires in the U.S. was caused by the finance sector, MarketWatch reported.

Almost 27 percent of all billionaires in the country in 2014 held finance and investment positions such as hedge fund managers. This compares to less than 12 percent of billionaires in 1996 working in finance.

According to Forbes, the top five billionaire-producing industries in the U.S. are finance and investments, technology, food and beverage, fashion and retail and real estate. Worldwide, the top five are finance and investments, fashion and retail, real estate, technology and manufacturing.

The study also revealed that there are a greater number of billionaires with connections in politics or in the resources and energy sector, MarketWatch reported. Some 4 percent of billionaires in 2014 made their money from these sources, while there were no such billionaires in 1996.

Additionally, the study showed that the share of billionaires who amassed their fortunes from inherited wealth has gone down, while the number of billionaires who are or were company founders has risen.

Healthcare Services

Turnover rate among healthcare industry CEOs reaches 18 percent

by  • 

Healthcare Industry CEOThe turnover rate of high-ranking executives in the healthcare industry continues to remain elevated this year.

According to FierceHealthcare, the 2016 turnover rate for hospital CEOs reached 18 percent for the third straight year. Although not quite as bad as the 20 percent peak in 2013, it still remains among the worst in the last 20 years.

The rate of departing CEOs has remained steadily between 16 and 20 percent over the past six years. Even during the recession years, rates did not exceed the 2004 peak of a 16 percent turnover.

The data comes from the American College of Healthcare Executives in an announcement that suggested the continuously changing landscape of the healthcare industry and the ensuing demands on CEOs are partially to blame. The retirement of Baby Boomer leaders in the field and an organizational consolidation that sees no end are also reportedly to blame.

The reports analyzed the turnover over the past two decades state by state, including the District of Colombia and Puerto Rico.

Missouri, the District of Columbia, Alaska and Nevada were at the top of the list for states with the highest adjusted turnover rates. Only three states held single digit rates: Maine, Wisconsin and Puerto Rico, which had the lowest adjusted rate of turnovers, at just 2.

Following the 2013 peak in turnover among healthcare CEOs, FierceHealthcare reported predictions that in response, hospitals would look for qualified applicants that may have a background outside of the field. With such extensive reform taking place in the healthcare sector, hospitals turned toward CEOs who may have had prior experience in banking, finance, accounting, venture capital or even private equity.

Regardless of backgrounds, Deborah J. Bowen, president and CEO of ACHE, urged organizations to have proper strategies in place in the event of these significant changes in leadership.

Internet & E-commerce

Recent acquisition reflects importance of consumer forecasting in e-commerce

by  • 

consumer forecastingA recent acquisition highlights the growing importance of consumer forecasting technologies in the e-commerce industry.

Software company E2open, based in Austin, Texas, bought Terra Technology, a technology company specializing in predicting consumer demand and trends, reported The Wall Street Journal.

E2open develops cloud-based software for companies to improve inventory and warehouse management. With the acquisition of Terra Technology, a firm that analyzes data to identify consumer buying patterns and anticipate changes in demand, E2open can offer retail companies enhanced, predictive inventory management software.

The clients of Terra Technology include big names like Procter & Gamble Co., ConAgra Foods Inc. and Unilever PLC, noted the source.

The acquisition comes as tech companies identify the growing need to more strongly connect demand to the supply chain to develop efficient inventory workflows that better respond to rising online sales, according to Retail Dive. Retail moguls Nordstrom and Target have increased their investments in predictive technologies, while inventory management software company Infor acquired GT Nexus, a logistics company, last year in an effort to consolidate front- and back-end supply chain processes.

“We’re thrilled to have Terra Technology join us,” said Michael Farlekas, CEO of E2open. “Terra’s Demand Sensing capabilities allow companies to combine massive amounts of data from the supply chain to leverage demand signals which dramatically improve forecast accuracy.”

Construction

NAWIC aims to promote growth of women in construction industry

by  • 

NAWIC aims to promote growth of women in construction industryThe construction industry is looking for ways to attract women to the field and the NAWIC is providing its support.

A nationwide campaign to modernize the culture and alter the stereotype of the male-dominated construction industry kicked off this week. The Women in Construction Week was organized by the National Association of Women in Construction (NAWIC) to showcase the talented and successful women in the field, according to the Minnesota Star Tribune.

Founded in 1953 by the mere 16 women in construction at that time, the NAWIC focuses on outreach, networking efforts and counseling for women interested in entering the field, according to its website.

According to the U.S. Bureau of Labor Statistics, in 2015 just 9.3 percent of people working in the construction industry were female. However, that number was up slightly from 8.9 percent the year previous.

Highlighting opportunity and growth in the field is especially important for recruiting young women. Debbie Beacher, owner of highway construction firm RFB Construction Inc. and president of the Southeast Kansas chapter of the NAWIC, spoke at Pittsburg State University this week, according to the Morning Sun.

At the NAWIC monthly meeting, women were invited to test out simulator tools as part of the effort to educate and encourage interest. And it just may be working.

The School of Construction at the university has seen significant growth in interest as construction companies are reaching out to recruit more and more females. About 44 percent of the 360 students enrolled in the fall 2015 were female, instructor of construction at the university Jenny McCool told the Morning Sun. McCool is also treasurer of the local NAWIC chapter.

“It’s very important that we continue to encourage women to consider a career in the construction industry,” McCool said. “Construction isn’t just about hammers and nails. It’s a big industry with many different facets, and women are increasingly playing an important role in many of those areas.”

Computers, US News

Top tech trends for professional services firms in 2016

by  • 

Top tech trends for professional services firms in 2016To stay agile and adaptable, professional services firms must embrace new technologies in 2016.

There are four key types of technology that will be most beneficial for companies in the industry this year, according to Industry Week. These include cloud-based applications, reliable data networks, mobile interfaces and business analytics applications.

The U.S. Department of Commerce reported that there were 760,000 professional services firms in the U.S. in 2012, with 7.8 million people employed by the industry. These firms generated a total of $1.5 trillion that year.

4 key tech trends
According to IW, there is room to grow.

Cloud software is improving talent management by providing a cost-effective way to train employees and develop new skills. According to IW, spending on learning and development at companies increased by 12 percent in 2015, the highest growth rate in nearly a decade. As spending on training grows, so do investments in cloud software. From just 2012 to 2013, spending on cloud-enabled HR systems rose 22 percent to reach nearly $4 billion dollars, and this number is expected to climb even higher in the next few years.

As cloud and mobile technologies expand, digital infrastructure needs to become more dependable and professional services firms will benefit from having reliable data networks. This year, spending on software as a service is expected to rise even higher into the billions of dollars. Adoption of enterprise resource planning software alone is predicted to reach nearly $35 billion in 2016.

Professional services firms also need to enhance their mobile offerings for both internal use and their customers, reported IW. It is not just smartphones that need to be considered – tablets and other devices are also on the rise. Some 53 million tablets are expected to be sold this year.

The fourth tech tool IW identified was business analytics applications. Two out of five professional services firms presently take advantage of these programs, which help companies manage customer relations, project workflows, risk analysis and other important functions.

Proprietary tech
While cloud-based software and mobile applications can be bought from third parties, proprietary technology – or software created by a company in-house – will give professional services firms a competitive edge in 2016, according to Forbes. By designing software applications themselves, companies can create systems that boast enhanced efficiency and meet the unique needs of both employees and clients.

Accounting, Aerospace & Aviation, Central US, Chemical, Construction, Contract Staffing, Engineering, Food & Beverage, Green Tech, Heavy Equipment, International News, Manufacturing, Marketing, Midwest US, Military & Defense, Mining, North America, Northeast US, Pacific US, Quality Assurance, Sales & Marketing, Southeast US, Southwest US, Textiles & Apparel, Transportation, US News

US Manufacturing Showed Signs of Rebounding in February

by  • 

After reporting some contraction over the last five months, US manufacturing activity in February showed signs of a bounce back in the most recent ISM Manufacturing index. “Brad Holcomb, chair of the ISM Manufacturing Survey Business Committee, said in an interview that while new orders were flat, the fact that it is still showing growth is good for the manufacturing sector, adding that 12 of 18 manufacturing sectors said new orders were growing, with only four reporting a decrease and is an improvement compared to January.” The ISM also noted the overall economy has seen growth for 81 months in a row.  Holcomb commented that “inventories have been contracting for eight consecutive months… Heading into last December that was a clear strategy. Now we are two months into 2016, and it is still low, which represents some conservatism in carrying lean inventories. The difference between the 51.5 in new orders and 45.0 in inventories is 6.5, which is good and it suggest we don’t have enough inventory to sustain this level of new orders and production and is likely to go up.”  The stock market seems to be regaining some of its recent losses.  That stabilization is a somewhat positive indicator for the second half of 2016.  This was reflected in a 2.6% increase in employment among US manufacturers in February.

 

Bruce Peacock
Vice President of Business Development               
The Richmond Group USA